George and William Colless purchased a sheep station in the area, naming it "Come by Chance" to reflect their surprise at being able to make such a purchase in this area. The town was later named after this property. It has frequently been noted on lists of unusual place names.

But my languid mood forsook me, when I found a name that took me,Quite by chance I came across it — `Come-by-Chance' was what I read;No location was assigned it, not a thing to help one find it,Just an N which stood for northward, and the rest was all unsaid.